We're global and growing
Looking forward, we at Stanley are very focused on expanding our presence deeper
into emerging markets such as China, Southeast Asia, Eastern Europe, the Middle
East and Brazil/Latin America.
Asia
Throughout Asia, Stanley has approximately 3,200 employees and eight factories,
in addition to one joint venture in Wendeng, China. Many of our businesses, such
as fastening, hydraulics, hand tools, hardware and mechanical tools, have locations
in Langfang, Jiashan and Xiolan as well as a presence in Taichung, Taiwan and India.
Looking forward, we have plans to expand our footprint in India, Japan and Singapore.
Given China's ranking as the #1 car manufacturer in the world in
2009, we saw tremendous opportunities to penetrate the automotive repair market
there. To do this, throughout 2009 we put plans in place for an early 2010 launch
of the Stanley Racing Tools Program, a professional brand and corresponding series
of products designed for China's automotive repair market. This program allows us
to leverage our existing presence in the industrial markets in China in order to
differentiate ourselves within the local automotive repair market, and provides
a platform to sell our automotive tools into garages and repair centers throughout
this important region.
Security in Asia: We continue to see tremendous opportunities in
the security solutions market in Asia and are focused on expanding our presence
organically and through acquisitions in the region to take advantage of the strong
growth expectations of the market:
- Over the last three to five years, the market for security solutions in Asia grew
15-17% and we believe this rate will continue for the next three to five years as
well.
- Within China alone, the Security market in 2008 was estimated to be $30 billion
(60% Convergent/Electronic and 40% Mechanical Access), with 20%+ growth expected
in the next two years.
Learn more about growth prospects for security
solutions.
Operational excellence internationally
Successful strides forward in 2009 with our brand and product presence in Asia aren't
the only things we're proud of; we had operational successes in Asia in 2009 as
well. For instance, through the rigors of the Stanley Fulfillment
System (SFS) we were able to increase our working capital by three turns,
which is more proof that SFS has embedded itself within the Stanley culture across
the globe.
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2009
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2008
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2007
|
|
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Asia
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Asia
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Asia
|
|
Total Cost of Sales
|
298.7
|
332.2
|
404.2
|
|
Accts and Notes Rec – Net
|
34.1
|
33.3
|
38.7
|
|
Net Inventory
|
34.3
|
47.7
|
43.2
|
|
Accounts Payable
|
60.4
|
56.4
|
63.3
|
|
Working Capital
|
7.9
|
24.6
|
18.6
|
|
Net Sales-Trade
|
231.6
|
219.0
|
260.7
|
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Working Capital Turns
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$ 29.1
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$ 8.9
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$ 14.0
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Latin America: "La Marca del Profesional"
Stanley's revenues in the Latin America region were slightly under $100 million
in 2009, but our sights are set on making that number much higher.
We're excited about the established presence Black
& Decker brings in Latin America, with revenues of approximately
$400 million, and we look forward to seizing the opportunities
this presents to sell more of Stanley's products through Latin American channels.
SFS has ingrained itself within the Latin American
region as well. From 2006 to 2009, inventories decreased by 50% and Delinquent Accounts
Receivable decreased by 86% on $14 million in sales decline.
Download a full copy of the 2009 Stanley Black
& Decker Annual Report To Shareholders, which includes the Letter to Shareholders,
Stanley Financial Summaries and the Stanley 10-K. You can also download a copy of
the 2009 Black & Decker 10-K.